Law limiting foreign shareholders’ stakes in Russian media outlets

Vladimir Putin signed Federal Law On Amendments to the Russian Federation Law On Mass Media.

October 15, 2014

11:00

Under the Federal Law, a foreign state, an international organisation or organisation under their control, a foreign legal entity, a Russian legal entity with foreign capital, a foreign citizen, a stateless person, or a Russian citizen who holds dual citizenship cannot act as founders of mass media outlets. Furthermore, the Federal Law prohibits these groups and individuals from playing an editorial role in mass media outlets or organisations (legal entities) engaged in broadcasting.

These groups and individuals are also prohibited from owning, managing or controlling, directly or indirectly, a stake (shares) of more than 20 percent in the charter capital of an entity or an individual being a participant (member, shareholder) of a founder or an editor of a mass media outlet, or of an organisation (legal entity) engaged in broadcasting. Other forms of corporate control by these groups and individuals are also prohibited.

Under the Federal Law, media outlets’ activity can be suspended by court order for violating the Law’s provisions.

The Federal Law sets forth the deadlines and rules for bringing organisations’ charter documents into line with its provisions.